The 5 most common cryptocurrency scams and how to protect yourself from them

The 5 most common cryptocurrency scams and how to protect yourself from them

What are the 5 most usual cryptocurrency scams these days? We’ll tell you here; we’ll also share advice on how to avoid them, as well.

Cryptocurrency  scams increased significantly during 2021. For this year, experts state that the amount and variety of these swindles will continue to grow. Therefore, it’s increasingly more important that people know the most common cryptocurrency scams and how to protect themselves from these thefts.

The data are convincing. Between October 2020 and May 2021, there were thousands of cryptocurrency scams, in the United States alone, which caused losses worth more than 80 million dollars. The situation in the United Kingdom was worse. There, people lost more than 146 million pounds sterling, in 2021, according to a police report.

Why are cryptocurrency scams increasing around the world? There are various conditions that provoke this increase. For example: the limited or non-existent regulation of the cryptocurrency market and the enormous interest that the idea of getting rich fast, by trading in cryptocurrencies, arouses in people.

These are the 5 most usual cryptocurrency scams these days:

1) The Ponzi schemes. 

These schemes ask people to invest their money in a project that, most of the time, doesn’t exist. The anonymity behind the cryptocurrency transactions makes it easier for the money to fall into the hands of the scammers.

2) Pump and dump.

This scam consists of thieves asking people to invest in the purchase of very recent cryptocurrencies, because “in the near future” their value will grow. The incautious fall into the trap and invest in this crypto. This makes the value of the cryptocurrency temporarily increase. So then, the scammer sells his own stocks of this cryptocurrency, thus generating more earnings; but then, he abandons the project and the cryptocurrency crashes completely.

3) Fake press releases

This theft is closely related to the previous one. The scammers elaborate a press release and distribute it to thousands of media around the world. Generally, these releases talk about important online shops that are beginning to accept payments in a particular cryptocurrency. Many journalists and media fall for the swindle and publish the release. This makes the cryptocurrency’s value grow immediately. This is exactly what the scammers hope for to sell their assets in this cryptocurrency. When the swindle is discovered, the crypto’s value will return to the lower value, but the thieves have achieved selling their assets at high prices.

4) Fake exchange businesses.

In this case, the thieves publish content on social media, where they promise access to a currency guarded in a cryptocurrency Exchange. To obtain permission to access this account, the user must first pay a fee to the supposed Exchange. In reality, this Exchange is fake and the people will lose the amount of money paid as the “fee”.

5) Identity impersonation

Phishing has even arrived at impacting the world of cryptocurrencies. The scammers send emails and text messages where they make themselves out as banks, government officials or credit card providers. In the message they ask the user to make an urgent payment of something in cryptocurrencies. Every day, thousands fall for this type of scams.

How to protect yourself from cryptocurrency scams

Experts in cybersecurity advise following several steps to avoid being victimized by cryptocurrency scams.

Simple ideas: activate the two-step authentication (2FA) for all of your digital wallets. Never download apps for your mobile device or computers that aren’t from official sites.

More complicated ones: Never pay attention to a supposed “investment opportunity” that asks for an advance payment. Never share your personal data, in any manner, from social networks up to emails.

Risk warnings
The views and opinions expressed are the views of Crypto Currency 10 and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All material(s) have been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.
Changes in rates of exchange may have an adverse effect on the value, price or income of an investment.
Past performance is no guarantee of future results and the value of such investments and their strategies may fall as well as rise.

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